Head to Head Contrast: Dollarama (DLMAF) & Its Peers

Dollarama (OTCMKTS:DLMAF) is one of 143 public companies in the “Broadline Retail” industry, but how does it contrast to its rivals? We will compare Dollarama to similar businesses based on the strength of its analyst recommendations, institutional ownership, valuation, profitability, dividends, earnings and risk.

Insider and Institutional Ownership

44.1% of shares of all “Broadline Retail” companies are held by institutional investors. 23.8% of shares of all “Broadline Retail” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Dollarama and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Dollarama	$5.21 billion	$940.70 million	51.50
Dollarama Competitors	$23.39 billion	$1.70 billion	-217.93

Dollarama’s rivals have higher revenue and earnings than Dollarama. Dollarama is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

Dollarama pays an annual dividend of $0.33 per share and has a dividend yield of 0.2%. Dollarama pays out 12.5% of its earnings in the form of a dividend. As a group, “Broadline Retail” companies pay a dividend yield of 32.4% and pay out 12.4% of their earnings in the form of a dividend. Dollarama lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a summary of current recommendations and price targets for Dollarama and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dollarama	0	4	5	4	3.00
Dollarama Competitors	1372	5334	10741	295	2.56

As a group, “Broadline Retail” companies have a potential upside of 15.74%. Given Dollarama’s rivals higher possible upside, analysts plainly believe Dollarama has less favorable growth aspects than its rivals.

Profitability

This table compares Dollarama and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dollarama	17.65%	94.77%	17.12%
Dollarama Competitors	-4.19%	-36.17%	-2.88%

Summary

Dollarama rivals beat Dollarama on 8 of the 14 factors compared.

About Dollarama

Dollarama Inc. operates a chain of dollar stores in Canada. Its stores offer general merchandise, consumables, and seasonal products. It also sells its products through online store. The company was formerly known as Dollarama Capital Corporation and changed its name to Dollarama Inc. in September 2009. Dollarama Inc. was founded in 1992 and is headquartered in Mount Royal, Canada.